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- 29 Nov 2022
- Research & Ideas
How Much More Would Holiday Shoppers Pay to Wear Something Rare?
Economic worries will make pricing strategy even more critical this holiday season. Research by Chiara Farronato reveals the value that hip consumers see in hard-to-find products. Are companies simply making too many goods?
- 08 Apr 2019
- Sharpening Your Skills
The Life of Luxury and How to Sell It
Luxury is its own market, but who shops there? Who sells there? What's the best strategy? Researchers at Harvard Business School examine consumerism at the top of the curve. Open for comment; 0 Comments.
- 21 Mar 2019
The Ferrari Way
Secretive sports car maker Ferrari opens up to Stefan Thomke about how it has bucked industry trends to achieve success. Open for comment; 0 Comments.
- 24 Aug 2017
- Cold Call Podcast
Does Le Pliage Help or Hurt the Longchamp Luxury Brand?
Longchamp's iconic but affordable Le Pliage bag is a conundrum for the company, explains Jill Avery in this podcast. Does an affordable luxury product work against the top-tier brand? Open for comment; 0 Comments.
- 22 May 2017
- Lessons from the Classroom
A Luxury Industry Veteran Teaches the Importance of Aesthetics to Budding Business Leaders
Pauline Brown, a former top executive with French luxury goods conglomerate LVMH Moët Hennessy Louis Vuitton, now teaches a Harvard Business School course called The Business of Aesthetics, which culminates in a competition called “Aesthetic Idol.” Open for comment; 0 Comments.
- 20 Feb 2017
Having No Life is the New Aspirational Lifestyle
It used to be that we equated power and prestige with a leisurely, luxurious lifestyle. Today, lack of leisure time is the real status symbol. Anat Keinan discusses what that means for consumer marketing. Open for comment; 0 Comments.
- 09 Jun 2014
The Manager in Red Sneakers
Wearing the corporate uniform may not be the best way to dress for success. Research by Silvia Bellezza, Francesca Gino, and Anat Keinan shows there may be prestige advantages when you stand out rather than fit in. Closed for comment; 0 Comments.
- 01 Feb 2010
The ‘Luxury Prime’: How Luxury Changes People
What effect does luxury have on human cognition and decision making? According to new research, there seems to be a link between luxury and self interest, an insight that may help curb corporate excesses. Roy Y.J. Chua discusses findings from his work conducted with Xi Zou of London Business School. Closed for comment; 0 Comments.
- 25 Nov 2009
- Working Paper Summaries
The Devil Wears Prada? Effects of Exposure to Luxury Goods on Cognition and Decision Making
Gandhi once wrote that "a certain degree of physical harmony and comfort is necessary, but above a certain level it becomes a hindrance instead of a help." This observation raises interesting questions for psychologists regarding the effects of luxury. What psychological consequences do luxury goods have on people? In this paper, the authors argue that luxury goods can activate the concept of self-interest and affect subsequent cognition. The argument involves two key premises: Luxury is intrinsically linked to self-interest, and exposure to luxury can activate related mental representations affecting cognition and decision-making. Two experiments showed that exposure to luxury led people to think more about themselves than others. Key concepts include: Luxury does not necessarily induce people to be "nasty" toward others but rather causes them to be less concerned about or considerate toward others. Experiment 1 showed that when primed with luxury, people are more likely to endorse self-interested business decisions (profit maximization), even at the expense of others. Experiment 2 further demonstrated that exposure to luxury is likely to activate self-interest but not the tendency to harm others. Exposure to luxury goods may activate a social norm that it is appropriate to pursue interests beyond a basic comfort level, even at the expense of others. It may be this activated social norm that affects people's judgment and decision-making. Alternatively, exposure to luxury may directly increase people's personal desire, causing them to focus on their own benefits such as prioritizing profits over social responsibilities. Closed for comment; 0 Comments.
- 29 Oct 2008
The Next Marketing Challenge: Selling to ’Simplifiers’
The mass consumption of the 1990s is fast fading in the rearview mirror. Now a growing number of people want to declutter their lives and invest in experiences rather than things. What's a marketer to do, asks professor John Quelch. Key concepts include: As the world economy slumps, one consumer segment will grow faster than ever: The Simplifiers. Simplifiers present a challenge to marketers. These are well-off people who value quality over quantity and who do not buy proportionately more goods as their net worth increases. Dining out, foreign travel, and learning a new sport will all prove more resilient than expected in the face of recession. Closed for comment; 0 Comments.
- 02 Sep 2008
Indulgence vs. Regret: Investing in Future Memories
Good news for makers of $20,000 watches and other luxury goods and services. Recent research from Harvard Business School professor Anat Keinan and a colleague suggest that we often regret not indulging ourselves earlier in life. Key concepts include: People can be too farsighted, or hyperopic, leaving wistful regrets of missing out on life's pleasures when they look back at how they spent their time. It's possible to motivate consumers to indulge themselves by simply asking them what they think they will regret in 10 years. Marketers can convince consumers that buying their product is actually a farsighted behavior, an investment in future memories. Closed for comment; 0 Comments.
- 29 Oct 2000
Building a Powerful Prestige Brand
Leveraging ambition, customer input, intuition, and a keen commercial imagination, a daughter of immigrant shopkeepers created a leader in the global prestige cosmetics market. HBS professor Nancy Koehn examines the genius of Estée Lauder. Closed for comment; 0 Comments.
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